The statement was made by Professsor, Dr Le Danh Vinh, deputy minister of Industry and Trade in an exclusive interview granted to the press on the latest developments of the imposition of anti-dumping tariffs on Vietnamese leather shoes after his recent visit to the EU.

Reporter: Could you please let us know about the latest developments concerning the imposition of anti-dumping tariffs on Vietnamese leather capped shoes?

Mr Vinh: According to EU regulations, July 7 is the deadline for EU footwear producers to file proposals to review the anti-dumping tariffs. At present, some EU producers have filed proposals on reviewing the tariffs.

The EU’s Anti-dumping Advisory Committee held a conference on September 17 to discuss the possible imposition of the anti-dumping tax on Vietnamese leather shoes. As a result, 15 out of 27 EU member countries protested against the review. EU commissioners will meet and make a decision on whether or not to review the tariffs.

Reporter: What is Vietnam’s viewpoint on the EC’s decision to review and extend these anti-dumping tariffs?

Mr Vinh: I can affirm that Vietnamese enterprises do not dump shoes on the EU market and Vietnam has no intention of encouraging them to do so.

The fact that some shoe manufacturers within the EU have asked to review anti-dumping tariffs on Vietnamese leather shoes has not reflected the viewpoint of all European shoe producers. The request goes against the trend of trade liberalisation pursued by the EU and ignores the benefits of both producers and consumers.

The 2009-2011 period is important for Vietnam to make full preparations to join and fully implement its WTO commitments and the ASEAN-EU Free Trade Agreement which is currently under negotiations.

Vietnam’s leather shoe industry, especially its workers will be seriously affected if Vietnam does not enjoy the Generalised System of Preferences (GSP) in the 2009-2011 period and is under the review for an anti-dumping tax rate of 10 percent for one and a half years.

We have called on the EU not to review its anti-dumping tax on Vietnamese leather shoes before the current tariff period automatically ends on October 6, 2008.

Reporter: Many EU organisations opposed the anti-dumping tax on leather-capped shoes. Could you provide more information about this?

Mr Vinh: Eight EU organisations have issued press releases rejecting the proposals to review the anti-dumping tariffs. They are the European Consumers’ Organisation, the European Chamber of Commerce, the European Association of Fashion Retailers, the European Federation for Company Sports (EFCS), the European Foreign Trade Association, the European Branded Footwear Coalition (EBFC), the European Outdoor Group (EOG) and the Association of the German Shoe Industry (HDS). These organisations stressed that the EU should not pursue its anti-dumping tax policy on leather shoes imported from Vietnam and China, particularly in the current context of high inflation rate and economic recession. This protective policy can only support some businesses that show weak competitiveness.

This has demonstrated that most EU members agree to end anti-dumping tariffs, as this measure is not suitable.

Reporter: What message has Vietnam sent to the European authorities as well as European footwear producers?

Mr Vinh: Vietnam is still a developing country with a low level of development and a small-scale economy which is facing a large trade deficit. Therefore, the country cannot be a threat to EU businesses.

The EU has always called for the promotion of trade liberation and European footwear producers have a good awareness of international labour allocation. Industries using a large number of workers like the footwear industry have been moving from developed countries to developing countries. There is no denying this fact.

EU businesses have many advantages in terms of investment capital, technology, design and marketing, while Vietnamese businesses enjoy a cheap labour force and good production capacity. Both sides can cooperate instead of competing with each other. Through cooperation we can introduce appropriate measures which benefit both sides and offer a better deal to consumers, including those from the EU.

Vietnam is willing to work with the EC to boost bilateral economic and trade cooperation, as well as the cooperation between the EC and other regional countries.

Reporter: Thank you.